despite the recent rally, MMM is still valued at 1.7x forecast revenue whereas Hellofresh is valued at 2.5x. If MMM was valued at 2.5x, this equates to a SP of $4.85. However, Hellofresh is clearly much much bigger (mkt cap Euro 7.6bn) and profitable (forecast NPAT $204m) so 2.5x valuation is probably highly unlikely for MMM as it stands. Still, what it does show there is still plenty or room for SP to increase from current $3.35 esp if the revenue forecast number proves overly conservative which must be looking likely in this current environment of second waves.
MMM Price at posting:
$3.35 Sentiment: Buy Disclosure: Held
